(RTTNews) - Quiksilver Inc.
(ZQK), an outdoor sports lifestyle company, on Wednesday said it has once again prevailed in its Federal court trial against Kymsta Corp. and its unfounded claims against Quiksilver and its 'Roxy' trademark.
Earlier, in May 2002, Quiksilver filed a suit against Kymsta Corp. in the United States District Court for the Central District of California to prevent Kymsta's use of the confusingly similar 'Roxywear' on juniors apparel.
In 2004, the Federal District Court granted Quiksilver the relief it requested, namely, an injunction limiting Kymsta to its then-current use of 'Roxywear' and preventing it from expanding, licensing or selling the mark. However, in 2006, the Ninth Circuit reversed the order, finding that certain issues should have been decided by the jury, and remanded for retrial.
Meanwhile, Kymsta dropped its junior line and started to use 'Roxywear' on contemporary apparel. As Kymsta ceased using 'Roxywear' in the juniors market where it originated, and begun using 'Roxywear' in the contemporary market, Quiksilver in the retrial sought to enjoin Kymsta from all future use of the 'Roxywear' mark.
The company noted that the jury unanimously found that Quiksilver's 'Roxy' trademark is valid and protectable and that Kymsta's 'Roxywear' infringed the 'Roxy' mark and constituted a false designation of the origin of Kymsta's goods.
Based upon the jury's findings, Federal District Court barred Kymsta from any future use of the 'Roxywear' trademark, subject to an 18 month phase-out period during which Kymsta must phase out all usage, while refraining from any expansion, marketing, licensing or sale of the mark.
ZQK closed Wednesday's regular trading session at $10.21, up 30 cents or 3.03%. However, in the after-hours, the shares lost 18 cents or 1.73%.
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